GE Aerospace Q2 Earnings & Revenues Beat Estimates, Increase Y/Y

GE Aerospace GE reported second-quarter 2025 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate.

It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric.

Inside GE’s Headlines

The company’s second-quarter adjusted earnings were $1.66 per share, which beat the Zacks Consensus Estimate of $1.43. The bottom line surged 38% year over year.

Total revenues were $11 billion, indicating a year-over-year increase of 21%. Total orders grew 27% on a year-over-year basis to $14.2 billion.

Adjusted revenues were $10.2 billion, marking a year-over-year increase of 23%. The metric beat the consensus estimate of $9.7 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

GE Aerospace Price, Consensus and EPS Surprise

GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote

GE’s Segmental Discussion

Revenues from the company’s Commercial Engines & Services business jumped 30% year over year to $7.99 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $7.43 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 28% year over year to $11.7 billion.

The Defense & Propulsion Technologies segment’s revenues totaled $2.56 billion, up 7% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.57 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment increased 24% year over year to $2.9 billion.

GE’s Margin Profile

GE Aerospace’s cost of sales (comprising costs of equipment and services sold) surged 22.8% year over year at $6.85 billion. Selling, general and administrative expenses increased 10.4% year over year to $1.02 billion. Research and development expenses totaled $359 million, reflecting a year-over-year rise of 19.7%.

GE Aerospace’s operating profit (non-GAAP) was $2.3 billion, up 23% year over year. The margin was 23%, down 10 basis points.

GE Aerospace’s Balance Sheet & Cash Flow

Exiting the second quarter of 2025, GE Aerospace had cash, cash equivalents and restricted cash of $10.9 billion compared with $13.6 billion at the end of December 2024. The company’s long-term borrowings were $17 billion compared with $17.2 billion at the end of December 2024.

In the second quarter, the adjusted free cash flow was $2.1 billion compared with $1.1 billion in the year-ago quarter.

In the same quarter, GE rewarded its shareholders with a dividend payment of $0.4 billion. The company repurchased shares for approximately $1.7 billion during the same period.

GE’s Outlook

For 2025, GE expects adjusted revenues to grow in the mid-teens range from the year-ago period's actual. Operating profit is estimated to be in the band of $8.2-$8.5 billion. Adjusted earnings are predicted to be in the range of $5.60-$5.80 per share. The free cash flow is anticipated to be in the band of $6.5-$6.9 billion, with the conversion rate projected to be more than 100%.

GE Aerospace expects the Commercial Engines & Services segment’s revenues to grow in the high-teens range, whereas operating profit is anticipated to be in the band of $8.0-$8.2 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid to high-single-digit range, whereas operating profit is anticipated to be in the band of $1.1-$1.3 billion.

Zacks Rank and Other Stocks to Consider

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks from the same space are discussed below: 

Huntington Ingalls Industries HII presently sports a Zacks Rank of 1. HII’s earnings surpassed the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 4.2%. In the past 60 days, the Zacks Consensus Estimate for Huntington Ingalls’ 2025 earnings has increased 0.8%.

Howmet Aerospace HWM currently carries a Zacks Rank of 2. HWM has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 8.8%.  In the past 60 days, the Zacks Consensus Estimate for Howmet Aerospace’s 2025 earnings has increased 0.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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